From Casetext: Smarter Legal Research

Lawyers' Fund v. Morgan Guaranty Trust Co.

Appellate Division of the Supreme Court of New York, Second Department
Mar 15, 1999
259 A.D.2d 597 (N.Y. App. Div. 1999)

Opinion

March 15, 1999

Appeal from the Supreme Court, Nassau County (Phelan, J.).


Ordered that the judgment is affirmed, with costs.

The defendant, Morgan Guaranty Trust Company of New York (hereinafter Morgan Guaranty), converted a $101,000 check drawn on the account of Melville Fergang when it paid over the forged endorsement of the named payee ( see, UCC 3-419 [c]; Tonelli v. Chase Manhattan Bank, 41 N.Y.2d 667). Consequently, Morgan was liable to the substituted plaintiff, the Lawyers' Fund for Client Protection, as subrogee of the rights of Melville Fergang.

The contention of Morgan Guaranty that Melville Fergang, and hence, the Lawyers' Fund for Client Protection, would be unjustly enriched by the award, is without merit ( cf., Goldstein Assocs. v. Bank of N.Y., 204 A.D.2d 288; Sweeney v. National Bank, 263 App. Div. 418, affd 290 N.Y. 624).

The remaining contentions of Morgan Guaranty are without merit.

O'Brien, J. P., Ritter, Thompson and Goldstein, JJ., concur.


Summaries of

Lawyers' Fund v. Morgan Guaranty Trust Co.

Appellate Division of the Supreme Court of New York, Second Department
Mar 15, 1999
259 A.D.2d 597 (N.Y. App. Div. 1999)
Case details for

Lawyers' Fund v. Morgan Guaranty Trust Co.

Case Details

Full title:LAWYERS' FUND FOR CLIENT PROTECTION, Respondent, v. MORGAN GUARANTY TRUST…

Court:Appellate Division of the Supreme Court of New York, Second Department

Date published: Mar 15, 1999

Citations

259 A.D.2d 597 (N.Y. App. Div. 1999)
688 N.Y.S.2d 158

Citing Cases

Lawyers' Fund v. Morgan Guaranty Trust Co.

The court's award of damages on the third-party claim included the amount for which Morgan Guaranty was…